The U.S. dollar started Tuesday’s session higher. Looking upon the index that tracks the value of dollar relative to its major opposing currencies, the U.S. dollar index, kept stable at 96.149 following its rise overnight by 0.6 percent.
The advance of the index was led by an unexpectedly stronger rise in the June Institute of Supply Management (ISM) national factory activity which also pulled the 10-year Treasury yield to a seven week high.
In the previous week, the dollar was tumbling due to the increasing expectations that central banks in Canada and Europe would decide to tighten monetary policy.
In the oil market, West Texas Intermediate crude tumbled by 0.3 percent. Futures climbed by 2.2 percent to $47.07 per barrel on Monday, indicating an eight-day rally as the black gold was able to recover after declining into a state of bear market.
Brent recorded some minor losses closing at $49.63 on Tuesday.
The price of gold struggled to finish on a positive note, and now it is on its way for its seven-month decline. The recent increase of the U.S. dollar negatively affected the yellow metal.
U.S. gold futures closed $23.1 lower to settle at $1,219.20 per ounce for its August delivery. Spot gold also edged down by 1.60 percent to trade at $1,221.37 per ounce.
Silver futures for September also recorded some losses after declining by 53.5 cents (3.2%) towards $16.092 per ounce. This is the metal’s lowest closure since the month of May.